Correlation Between Integral and CENTENE

Can any of the company-specific risk be diversified away by investing in both Integral and CENTENE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Integral and CENTENE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Integral Ad Science and CENTENE P DEL, you can compare the effects of market volatilities on Integral and CENTENE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Integral with a short position of CENTENE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and CENTENE.

Diversification Opportunities for Integral and CENTENE

0.52

Correlation Coefficient

Integral  CENTENE

Very weak diversification

The 3 months correlation between Integral and CENTENE is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and CENTENE P DEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTENE P DEL and Integral is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Integral Ad Science are associated (or correlated) with CENTENE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTENE P DEL has no effect on the direction of Integral i.e., Integral and CENTENE go up and down completely randomly.

Pair Corralation between Integral and CENTENE

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the CENTENE. In addition to that, Integral is 1.66 times more volatile than CENTENE P DEL. It trades about -0.1 of its total potential returns per unit of risk. CENTENE P DEL is currently generating about -0.04 per unit of volatility. If you would invest  8,599  in CENTENE P DEL on December 23, 2024 and sell it today you would lose (356.00) from holding CENTENE P DEL or give up 4.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Integral Ad Science  vs.  CENTENE P DEL

Integral Ad Science

Risk-Adjusted Performance

Very Weak

Over the last 90 days Integral Ad Science has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

CENTENE P DEL

Risk-Adjusted Performance

Very Weak

Over the last 90 days CENTENE P DEL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CENTENE is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Integral and CENTENE

The main advantage of trading using opposite Integral and CENTENE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, CENTENE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CENTENE will offset losses from the drop in CENTENE's long position.

The idea behind Integral Ad Science and CENTENE P DEL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.